Community leaders have welcomed the withdrawal of plans for a new village in Lower Deeside.
A 1500-home development had been planned for Park Quarry, south of Drumoak.
Chap Group had been seeking the go-ahead for the Kincluny project, which would also take in community facilities including a school and a health centre.
A pre-determination hearing was held by Kincardine and Mearns Area Committee in Drumoak last October which heard claims from opponents that the proposed development would “forever spoil the Dee Valley”.
But the company has now decided to withdraw its plans.
Chap Group’s joint managing director Douglas Thomson said: “It is extremely disappointing to have withdrawn the proposals to develop a new village (Kincluny) at Park Quarry near Drumoak.
“Over the last six years we have sought to carefully design a new village that not only places great importance to the unique setting and character of the area, but importantly one that has the right infrastructure to support it.
“Whilst there are no technical constraints to the delivery of Kincluny, we acknowledge the Scottish Government Reporter’s conclusions into the examination of the Local Development Plan (LDP), particularly where they advise that sufficient housing land supply has been allocated.”
He added: “We do though still firmly believe that the Kincluny proposals represent a real opportunity to regenerate a brownfield site in the heart of Deeside.
“There is growing and urgent demand for family houses, of all types, across Aberdeenshire, demand that is currently not being met by current housing allocations.
“We will continue to promote Kincluny through the next Strategic Development Plan (SDP) and LDP, and will be ready should there be a requirement to bring the new village forward over the coming years.”
Chap’s decision has been welcomed in the local community.
David Morrish, a member of Crathes, Drumoak and Durris Community Council, said: “We commend Chap for withdrawing their application.
“We have always said that a development of this size was totally inappropriate and it has been resisted by the community from day one.”
Mr Morrish added that they now looked forward to hearing Chap’s plans for reinstating the land for agricultural use.